Shri. Nandkishore Kishanrao Dilerao, Nanded V. Income-tax Officer, Ward - 3(1), Nanded

ITA 1851/PUN/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 7513 (ITAT-PUNE)
• Duration Of Justice: 4 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 04-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ARISES OUT OF PASSED
• Keywords: Bogus purchase

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT . / ITA NO.1851/PUN/2018 / ASSESSMENT YEAR : 2010-11 SHRI NANDKISHORE KISHANRAO DILERAO, PROP. OF SUNDER TRADING COMPANY, LOHAR GALLI, NANDED. PAN : AAJPD5338F VS. ITO, WARD-3(1), NANDED (APPELLANT) (RESPONDENT) / ORDER PER R.S.SYAL, VP : THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE ORDER PASSE D BY THE CIT(A)-2, AURANGABAD ON 27-08-2018 IN RELATION TO THE ASSESSMENT YEAR 2010-11. 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAINST THE CONFIRMATION OF ADDITION ON ACCOUNT OF HAWALA PURCHASES. 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT THE ASSESSE E WAS FOUND TO HAVE RECORDED PURCHASES FROM HAWALA DEALER TO THE TUNE OF RS.76,20,165/-. ON BEING CALLED UPON TO SUBSTANTIATE THE APPELLANT BY SHRI KISHOR PHADKE RESPONDENT BY SHRI RAJESH GAWALI DATE OF HEARING 30-04-2019 DATE OF PRONOUNCEMENT 30-04-2019 ITA NO.1851/PUN/2018 SHRI NANDKISHORE KISHANRAO DILERAO 2 GENUINENESS OF THE TRANSACTION, THE ASSESSEE FILED CERTAIN D ETAILS. THE ASSESSING OFFICER (AO) GOT CONVINCED TO THE EXTENT OF TH E QUANTITY ACTUALLY RECEIVED AGAINST SUCH HAWALA PURCHASES. HE , HOWEVER, MADE AN ADDITION OF RS.8,46,685/- @12.5% ON A CCOUNT OF EXCESS PURCHASE PRICE DUE TO HAWALA TRANSACTIONS. THE LD. CIT(A) REDUCED THE ADDITION TO 10%, AGAINST WHICH THE ASSES SEE HAS COME UP IN APPEAL BEFORE THE TRIBUNAL. 4. I HAVE HEARD BOTH THE SIDES AND GONE THROUGH THE RELE VANT MATERIAL ON RECORD. THE ISSUE OF BOGUS PURCHASES HAS R ECENTLY COME UP FOR CONSIDERATION BEFORE THE HONBLE BOMBAY HIGH COURT IN PR.CIT VS. MOHOMMAD HAJI ADAM & CO. VIDE ITS JUDGMENT DATED 11-02-2019 IN ITA NO.1004 OF 2016 AND OTH ERS, THE HONBLE JURISDICTIONAL HIGH COURT HAS HELD THAT NO AD HOC ADDITION AT THE RATE OF 10% OF BOGUS PURCHASES IS WARRANTED . RATHER THE ADDITION SHOULD BE MADE TO THE EXTENT OF DIFFERENCE BETWEEN THE GROSS PROFIT RATE ON GENUINE PURCHASES AND G ROSS PROFIT RATE OF HAWALA PURCHASES. SUCH DETAILS ARE NOT READ ILY AVAILABLE WITH THE LD. AR AS WELL TO FACILITATE THE CALCULATION OF GROSS PROFIT RATES OF GENUINE AND HAWALA PURCHASES. UNDE R THESE CIRCUMSTANCES, I SET-ASIDE THE IMPUGNED AND REMIT THE MATTER TO ITA NO.1851/PUN/2018 SHRI NANDKISHORE KISHANRAO DILERAO 3 THE FILE OF AO FOR APPLYING THE RATIO LAID DOWN BY THE HONBLE JURISDICTIONAL HIGH COURT IN THE ABOVE NOTED CASE AND RECOMPU TE THE AMOUNT OF ADDITION, IF ANY, AFTER ALLOWING A REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. 5. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATISTICAL PURPOSES . ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH APRIL, 2019. SD/- (R.S.SYAL) / VICE PRESIDENT PUNE; DATED : 30 TH APRIL, 2019 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. ( ) / THE CIT (APPEALS)-2, AURANGABAD 4. THE PR. CIT-2, AURANGABAD 5. , , SMC / DR SMC, ITAT, PUNE; 6. / GUARD FILE. // TRUE COPY // / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRETARY , / ITAT, PUNE ITA NO.1851/PUN/2018 SHRI NANDKISHORE KISHANRAO DILERAO 4 DATE 1. DRAFT DICTATED ON 30-04-2019 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 30-04-2019 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS 6. KEPT FOR PRONOUNCEMENT ON SR.PS 7. DATE OF UPLOADING ORDER SR.PS 8. FILE SENT TO THE BENCH CLERK SR.PS 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK 10. DATE ON WHICH FILE GOES TO THE A.R. 11. DATE OF DISPATCH OF ORDER. *